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Eurozone PMI Reaches 10-Month High

Eurozone PMI Reaches 10-Month HighEurozone PMI Reaches 10-Month High

The Markit Eurozone Purchasing Manager’s Index for October rose to 53.7 from 52.6 in September and above expectations of 52.8. The October reading is the highest so far this year. The increase was mainly caused by Germany, with growth there achieving substantial momentum, reaching the second largest monthly increase for this year.

Meanwhile, the rate of growth slowed in France. Output growth among the other eurozone countries rose from September’s 21-month low but was still one of the lowest  in the past two years. The reading for the manufacturing sector hit a 30-month high of 53.3, above market expectations of a rise to 52.7 and September’s reading of 52.6, Yahoo reported.

Britain’s economic growth covering a full quarter since the EU referendum showed that GDP grew more than the forecast of 0.3% in the third quarter. The Office for National Statistics Office revealed last week that GDP grew by 0.5% from July to September, less than the 0.7% growth recorded in the April to June quarter. The ONS said that GDP growth recorded in the last quarter is lower than the average quarter-on-quarter growth of 0.6% seen since the first quarter of 2013.

On a year-to-year basis GDP rose by 2.3% compared to an estimate of 2.15. Growth in the third quarter was mainly due to an increase in the services industry of 0.8%, which was offset by a fall in output of 1.4% in construction, 0.7% in agriculture and 1% in manufacturing.

 

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